We are actively engaged in work in these core growth energy markets: clean syngas as a lower-cost alternative to expensive imported natural gas and LNG for industrial use; a cleaner coal to power solution, and a conversion of our syngas to SNG, or substitute natural gas, to be sold into natural gas pipelines," said Robert Rigdon, SES's President and Chief Executive Officer.
"Our gains in these three markets include the award in December 2014 of three project license and equipment orders related to our Tianwo-SES Joint Venture, for Aluminum Corporation of China
The fast-track speed of construction of these first natural gas replacement projects underway by our China JV partner's ICCDI design institute and supported by our Tianwo-SES JV is quite remarkable given the scope and scale of the facilities.
We expect to have the first two CHALCO industrial syngas projects operational by calendar year-end, with the third project to follow in 2016.
Combined, these momentum-building projects are expected to represent approximately 140 million Yuan in orders to our Tianwo-SES JV and will expand our installed based in China from 5 to 12 SES gasification systems.
Through implementation we are gaining knowledge that will allow us to modularize our technology to be even more efficient and competitive in order to expand our Tianwo-SES business into larger scopes of supply with turnkey capability of our gasification systems," stated Rigdon
"Today, China is no longer routinely permitting coal-fired power plants in an effort to reduce traditional pollutants such as NOx
, mercury and particulate matter.
The environmental performance of our gasification technology in electric generation applications is central to our Growth With Blue Skies initiative.
Our technology is more environmentally friendly than traditional coal-fired power plants and offers leading gasification efficiencies, lower water usage and the ability to run low-cost coals.
When combined with the GE aero-derivative gas turbines, we create a power plant that we call iGas.
iGas can produce much cleaner, low-cost power than a traditional coal-fired power plant, and the iGas plant would segregate much of the CO2 from the syngas making it available for carbon sequestration in the future," continued Rigdon
"This past fiscal year, jointly with Dengfeng Power Group and Tianwo-SES, we initiated the pre-feasibility evaluation work for the first iGas cleaner coal distributed power project in China.
We have assembled the required preliminary cost, performance, emissions and schedule information for Dengfeng Power
who would be the ultimate owner-operator of the project.
Once these preliminary reviews have been completed the parties intend to move into the much more detailed Feasibility Study Report phase, which is required for government approvals to build the project.
This first project is intended by Dengfeng Power
to serve as a model for additional iGas projects, targeted by Dengfeng Power
at approximately 600 MW in total capacity to be built in Dengfeng City and the Henan area.
"We are in advanced discussions with a Chinese firm for a conversion of our syngas to SNG, to be sold into natural gas pipelines, which is our third opportunity market which we believe has potential for significant future growth," said Rigdon
concluded: "With strengthened operations and a strong foundation for commercialization, we are working hard to grow our partnership with our China Joint Venture partner, Suzhou Thvow Technology Co., Ltd.
SES's President and CEO, Robert W. Rigdon, and CFO and Corporate Secretary, Roger L. Ondreko, will hold a conference call to review the Company's financial results and provide an update on corporate developments beginning at 4:15 p.m. EDT on September 16.